Bad Faith

Recent California Supreme Court Decision on Insurance Bad Faith a Victory for Insured

Insurance companies are obligated to review and attempt to settle claims in good faith.  Different standards of “good faith” apply depending on whether you paid the premium (such as when you are the defendant in a suit, or when you are making a claim under your automobile policy’s uninsured or underinsured coverage), or another person paid the premium.  When an insurance company breaches that duty, the individual or entity harmed by the bad faith dealing may bring an action for compensatory and often punitive damages against the insurer.


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